Based on the recent report published by the personal finance website WalletHub, New Jersey residents bear the heaviest property tax burden in the nation.
The report, titled “2024’s Property Taxes by State,” reveals that the Garden State holds the top position for property taxes in the United States, including Washington DC Specifically, homeowners in New Jersey face an annual property tax of $9,345 on a median home value of $401,410.
WalletHub conducted a comparative analysis using US Census Bureau data for all 50 states and Washington, DC to determine property tax rankings.
The methodology involved dividing the median real estate tax payment by the median home price in each state to calculate an effective real estate tax rate.
US Property Tax Report: Hawaii, New York, and More
The report noted that Hawaii boasts the lowest property taxes in the United States. The estimated tax on a median-valued home of $764,800 in Hawaii amounts to approximately $2,054.
Conversely, New York contends with the sixth-highest property tax burden, with the tax on a median-valued home of $384,100 reaching an estimated $6,303 this year.
Several other Northeastern states, such as Connecticut, Vermont, and New Hampshire, also received unfavorable rankings in the report.
Based on WalletHub, citing data from the US Census Bureau, the average American household is expected to allocate $2,869 towards property taxes for their homes in 2024.
Furthermore, Residents in 26 states subject to vehicle property taxes, including Massachusetts, Connecticut, and Rhode Island, incur an additional annual expense of $448 on average.
According to the National Tax Lien Association, escalating property tax expenses have led to a surge in individual debt, resulting in over $14 billion in unpaid property taxes annually.
WalletHub analyst Cassandra Happe highlighted that property tax burdens pose challenges not only for homebuyers but also for renters, who constitute approximately 35% of households across the United States.
